Search Results

How to assess the benefits of premium credit cards with annual fees Using rewards credit cards can enhance the value of your daily expenses, often providing a range of travel and lifestyle benefits. However, many top-tier credit cards come with annual fees that can reach into the hundreds of dollars. So, when does paying a credit card's annual fee make sense? It comes down to whether the benefits you receive from the card outweigh the yearly cost. Nonetheless, it's essential to conduct thorough research and compare multiple credit card options to find the optimal balance between cost and benefits. Leverage travel and hotel benefits While you might typically avoid fees, a credit card's annual fee can be justified if the card's benefits exceed its cost. Instead of solely focusing on rewards rates, prioritize evaluating the overall perks a card offers. Many no-annual-fee credit cards provide exceptional rewards as well. Take, for example, the Capital One Venture X Rewards Credit Card, which carries a substantial $395 annual fee. However, it includes a $300 annual travel credit redeemable through Capital One Travel and provides 10,000 bonus miles each year (equivalent to $100 in travel) starting from your first anniversary. Even if you don't travel frequently, it's not difficult to offset the annual fee each year, especially when you consider the card's additional premium perks, such as complimentary access to airport lounges. For travelers, hotel credit cards can also be a smart choice due to the complimentary annual night benefit they offer. With the IHG One Rewards Premier Credit Card, you receive an annual free night valued at 40,000 points. Depending on how you use this benefit, it can provide significantly more value than the card's $99 annual fee. Additional benefits of this card include a $100 statement credit, 10,000 bonus points upon spending $20,000 each calendar year, a fourth night free on award stays lasting four nights or more, and Platinum Elite status. Consider benefits to subscriptions and other services One common subscription service offered by premium credit cards is subscriptions to entertainment or lifestyle services. This can include access to streaming platforms, discounts on event tickets, or exclusive invitations to special events. These perks cater to cardholders who enjoy entertainment and leisure activities, providing added value beyond traditional rewards programs. For example, the American Express Platinum card provides cardholders with complimentary memberships and credits for various subscription services. It includes up to $200 in Uber credits annually, access to the Global Lounge Collection (including Centurion Lounges and Priority Pass lounges), and complimentary memberships with programs like Fine Hotels & Resorts and The Hotel Collection. The Chase Sapphire Reserve offers a complimentary Priority Pass Select membership, providing access to over 1,300 airport lounges worldwide. Cardholders also receive up to $300 in travel credits annually, which can be used for various travel expenses, including flights, hotels, and car rentals; and complimentary subscriptions for Instacart and DoorDash Avoid annual fees on credit cards for poor credit Traditionally, credit cards with annual fees have been associated with rewards and benefits, but there's a growing category of credit cards that charge an annual fee primarily to help people build credit. However, in recent years, the market has seen a rise in unsecured starter credit cards and credit cards tailored for individuals with poor credit that do not require an annual fee. For example, the Chase Freedom Rise credit card considers applicants who maintain a Chase checking account with a balance of $250 or more, making it accessible to those new to credit. Similarly, fintech company Petal utilizes its proprietary Cash Score, which incorporates income and expense data alongside credit scores, to assess eligibility. These innovative card options provide more opportunities for responsible money managers with less-than-perfect credit histories to access credit and improve their financial standing. The bottom line While credit cards with annual fees may initially seem like an extra expense, they often provide access to subscriptions and services that can significantly enhance the cardholder's lifestyle and travel experiences. For people who frequently travel or enjoy exclusive perks and services, these cards can be a worthwhile investment, offering convenience, comfort, and additional value beyond the basic rewards structure. When choosing a credit card, it's essential to consider your spending habits, travel preferences, and lifestyle to determine which card will provide the most value based on the included subscriptions and services.

"We were keeping up with the Joneses, but we were going against Tom Cruise and Katie Holmes" Nicolas Cage Nicolas Cage reigned as one of Hollywood's top-earning actors. Yet, he indulged in extravagant expenditures, like acquiring a $150,000 octopus and a $276,000 dinosaur skull (which he later returned to the Mongolian government due to its stolen origin). His lavish lifestyle extended to owning 15 residences globally, among them two European castles. Eventually, his financial recklessness led to owing the IRS $6.3 million and facing foreclosure threats on numerous properties. During an appearance on 60 Minutes, Nicolas Cage revealed that he immersed himself in his craft to settle his debts, stating, "Work was always my guardian angel. It may not have been blue-chip, but it was still work. Even if the movie ultimately is crummy ... I’m not phoning it in. I care, every time." Remarkably, the actor managed to resolve his financial obligations without resorting to bankruptcy. T-Pain During an episode of The Breakfast Club, T-Pain reflected on his journey from being "mega-rich," losing it all, and then regaining wealth. The singer disclosed that he once had $40 million in his bank account. However, bad real estate investments and imprudent spending, such as purchasing a Bugatti and later returning it at a $400,000 loss, left him financially depleted. "I even had to borrow money to treat my kids to Burger King," he admitted. Now he's no longer chasing the money, explaining, "That $40 million — I was hustling, I needed to be on everybody's record and every record gotta go No. 1, I gotta do this work. And at that time, I didn't know my family at all." He commended his wife for sticking with him through thick and thin and said his focus is now on his family. Heidi Montag and Spencer Pratt Heidi Montag and Spencer Pratt rose to fame on MTV's The Hills. During their peak, they reportedly earned $2 million annually, as per People magazine. However, the couple indulged in extravagant spending habits, including $1 million on clothing for Heidi and another $1 million on a crystal collection for Spencer, along with lavish dinners featuring $3,000 bottles of wine. Reflecting on their choices, Spencer remarked, "We were trying to keep up with the Joneses, but we were competing against Tom Cruise and Katie Holmes. We should have stayed in our reality TV lane." Chris Tucker Following his rise to fame through Def Comedy Jam and Friday, Chris Tucker amassed significant wealth with the lucrative Rush Hour franchise, earning $25 million for the third installment alone. However, in 2021, he faced legal action from the IRS for unpaid taxes totaling $9.6 million spanning the years 2002, 2006, 2008, and 2010. Last year, he resolved the matter by agreeing to a settlement, committing to pay $3.6 million to settle his tax liabilities. Christy Carlson Romano Christy Carlson Romano gained fame as a Disney Channel star, particularly known for her role in Even Stevens. However, two years ago, she shared a candid YouTube video detailing her financial journey. In the video, she reflected on spending extravagantly on shopping trips, expensive cars, and even a psychic who took advantage of her financially. Romano admitted, "I had this money at my disposal. I was never told how much money I was making. Money didn't have a purpose for me; I didn't really know what it was. I just knew that I had it and didn't care about it. That's a problem." Christy shared that as she's grown older, she's gained a better understanding of finances and has come to terms with her past experiences. She expressed a desire for her daughters to have more financial awareness as they grow up. "Build small and make sure that you're doing things that are smart, that can make you money, not break you," she advised viewers. "And enjoy the things that are not expensive ... Go out and enjoy the day. It's free."

Although mortgage rates are high, there are other ways for potential homebuyers to save Amidst soaring mortgage rates reaching 8% and a dearth of new listings, prospective home buyers find themselves grappling with substantial expenses and limited alternatives. Nonetheless, there exists a silver lining—they possess more bargaining power than they might perceive. Recent data from Redfin indicates a notable uptick in failed home sales, underlining buyers' hesitance, with nearly 16% of pending transactions collapsing in August, compared to about 11.7% during the same period in 2021. Consequently, sellers are more receptive to certain requests as to not risk losing the deal. Beyond merely scouting for the most favorable rates, buyers can also leverage a range of additional concessions from sellers to alleviate their burden of closing costs and monthly payments. Here are three key considerations for potential requests from sellers: Help with closing costs Real estate agents suggest considering requesting a credit from the seller to offset closing costs. Closing costs are typically from 2% to 5% of the financed amount and are usually paid by the borrower. For example, if you were to borrow $100,000 to buy a home, you could expect to pay $2,000 to $5,000 in closing costs. Closing costs that sellers can help cover include: Appraisal fees: The expense assessing the current market value of the property Attorney fees: In certain states, legal assistance may be required for closing Discount points: An upfront fee paid to secure a reduced mortgage interest rate. Inspection fees: Associated costs for conducting a thorough examination of the property to identify any potential damage, pests, or other concerns Loan origination fees: Charges for processing your loan application Property taxes: Taxes up to the end of the year at the time of closing Recording fees: Minor charges for registering the home purchase with local governmental authorities Title insurance: Coverage safeguarding the lender from any claims against the property, with the option to also procure a separate buyer's policy for personal protection Get a rate buy-down on your mortgage Real estate agents note an increasing trend among lenders, sellers, and home builders to assist in reducing a buyer's mortgage interest rate for a specific duration, also known as a rate buy-down. For instance, considering a $300,000 loan at 7.80%, if the seller acquires two points at a cost of $6,000, the buyer's interest rate could decrease to 7.30%, resulting in a monthly principal and interest payment reduction from $2,159 to $2,056 (translating to savings of $103 per month and $37,080 over 30 years). However, it's important to recognize that the appeal of a permanent rate buy-down may diminish if interest rates decline in the future and prompt refinancing. Furthermore, some lenders may offer opportunities for future mortgage refinancing at no additional cost, although the terms of such offers vary. Fixing up the house According to real estate agents, sellers are displaying a greater willingness to address repairs compared to approximately two years ago. Seller concessions can include repairs and upgrades to the home. For example, if you incorporate a home inspection contingency into your offer, you can then opt to withdraw from the agreement or request the seller to address specific repairs based on the findings of the inspection. When it comes to seller concession for home repairs, concentrate on significant issues like a leaking roof or a malfunctioning water heater. Minor cosmetic imperfections, such as a missing light bulb or a broken window latch, are tasks you can manage independently. If the seller pushes back, explore negotiating a credit at closing to mitigate some of the repair expenses.

A quick guide to revamping your finances this spring As March 19 heralds the arrival of spring, it signals the commencement of the annual ritual of "spring cleaning" for many households. Yet, amidst the scrubbing and dusting of our homes, another crucial area warrants attention: our finances. Just as tidying up our living spaces can bring order and savings, so too can organizing and streamlining our financial accounts. Allocating time in the upcoming weeks to "spring clean" our finances can yield significant benefits and savings throughout the year. Below are ten ways you can spring clean your finances, setting you up for better money management throughout the rest of the year. 1. Check your credit report A fundamental step in organizing your finances this spring is to review your credit report. It's crucial to scan for any inaccuracies that could be adversely affecting your credit score, such as incorrect personal details, balance discrepancies, or accounts stemming from identity theft. Surprisingly, errors on credit reports are more prevalent than commonly assumed. According to a Federal Trade Commission study, one in five Americans is likely to encounter errors on at least one of their credit reports. Moreover, complaints regarding credit report inaccuracies have more than doubled from 2021 to 2023, escalating from 165,129 to 443,321, as reported by Consumer Reports. Fortunately, accessing your credit report from each of the three major credit bureaus—Equifax, Experian, and TransUnion—is now easier than ever, with AnnualCreditReport.com offering complimentary reports on a weekly basis. Not only does checking your report serve as a proactive measure for rectifying errors, but it also serves as an initial step for those aiming to enhance their credit score. 2. Get rid of unwanted subscriptions Chances are, you're shelling out cash each month for subscriptions you neither need nor remember signing up for, gradually chipping away at your budget. An effective strategy to reclaim some of that money—be it a little or a substantial sum—is to purge yourself of unnecessary subscriptions. Unless your TV is permanently glued to your eyeballs, chances are you don't require more than one or two streaming services, such as Netflix. Moreover, if you initially subscribed to binge-watch a specific series, it's highly likely you've forgotten to cancel now that you're all caught up. Beyond entertainment subscriptions, a plethora of other services could be silently draining your income each month, spanning meal-prep deliveries, dating apps, to music streaming platforms. Consider employing an app capable of monitoring your monthly subscriptions and facilitating their cancellation, such as Rocket Money or PocketGuard. Many of these apps boast additional features geared towards enhancing financial management. 3. Sell your unwanted items As you spring clean your attic or basement this year, reconsider before discarding everything. Some of the forgotten items gathering dust may hold surprising value. Classic video games, vintage toys, and Boy Scout memorabilia, among others, have been known to fetch thousands of dollars on platforms like eBay, Mercari, or Poshmark. Before you hastily donate those old boxes to your local Goodwill, take a moment to see if any of your unwanted items might be worth reselling. 4. Put an estate plan in place If you've been overlooking the importance of estate planning or procrastinating on it, now is an opportune moment to take action. According to the Caring.com 2024 Wills and Estate Planning Study, only 32% of Americans have a will in place, marking a 6% decline from the previous year. Interestingly, 40% of Americans cite insufficient assets as the reason for not having a will. However, it's crucial to recognize that an estate plan offers benefits for individuals of all financial backgrounds. Without one, the state assumes control over distributing your assets, potentially leading to prolonged legal battles for your loved ones. For those who already have an estate plan, it's essential to periodically review it, especially following significant life changes. Additionally, ensure that the beneficiaries listed on all your accounts are current, not solely those outlined in your will. Beneficiaries designated on documents such as life insurance policies and 401(k)s take precedence over those named in a will. 5. Review your insurance policies This spring, take the opportunity to cut costs by reassessing your insurance policies and securing the most competitive rates available. Explore various insurance providers to obtain quotes and compare prices. Additionally, if you haven't already, contemplate consolidating your home and auto insurance for potential savings. According to Progressive, bundling these policies can yield an average discount of 7% on your auto policy. Consider implementing these strategies to save money across different insurance categories: discover eight techniques to reduce life insurance expenses, uncover 12 methods to decrease auto insurance premiums, and explore six approaches to find the most affordable home insurance options. 6. Maximize credit card rewards Furthermore, it's prudent to assess the credit cards in your possession. Are you fully capitalizing on the benefits they offer? Evaluate your spending habits to determine which cards provide optimal cashback rewards for your most frequent expenses. Additionally, take note of any supplementary perks provided by your cards, along with any sign-up bonuses that could bolster your savings over the course of the year. 6. Go paperless with your financial documents and statements If you're still receiving paper statements from financial institutions, consider switching to paperless notifications. This applies to credit cards, loans, brokerage accounts, and even bills. Opting for paperless reduces household clutter and is environmentally friendly. With digital statements, tracking your finances becomes more convenient as all statements are consolidated in one accessible location. Regarding existing paper records, many institutions offer the option to upload important documents into a secure digital vault. Once you have a digital copy, you can typically dispose of the paper version. It's essential to retain certain records, such as tax documents from the past seven years and any paperwork pertaining to active loans, whether in digital or paper format. 7. Plan for future tax seasons To alleviate the annual burden of spring cleaning, some opt for scheduled deep cleaning sessions throughout the year. Similarly, tax planning demands attention at various intervals, extending beyond the tax-filing season. Whether it's before or after Tax Day, integrating tax-efficient strategies into your financial plan remains beneficial at any time. Consider incorporating a combination of the following tactics: 1. Tax-loss harvesting: This involves selling securities at a loss to offset capital gains in taxable investment accounts, thereby reducing your taxable income. 2. Tax-aware asset allocation: Different types of accounts are subject to varying tax treatments. A tax-aware asset allocation strategy considers these differences to potentially enhance after-tax returns. 3. Tax-favorable investments: Certain investments, such as municipal bonds, tax-efficient mutual funds, and 529 plans, offer opportunities to save for diverse financial goals while also providing tax advantages. 8. Roll over your old 401(k) If you've changed jobs recently, it's essential to consider rolling over your old retirement contributions. You can transfer them to your new employer's account or opt for an IRA, which offers greater investment flexibility and account control. Rolling over your old 401(k) can offer several benefits, including greater investment flexibility and potential cost savings. By consolidating your retirement accounts, you can streamline your financial management and gain more control over your retirement savings. Additionally, leaving old 401k plans untouched can lead to accumulating fees over time, impacting your retirement savings negatively. To initiate a rollover, start by contacting your new employer's retirement plan administrator. You can then request a direct transfer of funds from your old 401(k) into your new account, without incurring taxes or penalties. Be sure to consider factors such as investment options, fees, and account features when selecting the destination for your rollover. 9. Set up and plan your sinking funds A sinking fund refers to the money set aside each month for anticipated expenses that occur periodically but not on a monthly basis, such as car maintenance, home repairs, vacations, weddings, or holiday gifts. These funds are advantageous as they allow gradual saving over time and prevent the need to dip into emergency funds to cover these expenses. It's essential to list anticipated expenses for the upcoming months or years and establish sinking funds accordingly to ensure preparedness when these expenses arise. To create an effective strategy for sinking funds, start by identifying potential future expenses and estimating their costs. Next, prioritize these expenses based on urgency and frequency, allocating funds accordingly. Set up separate accounts or designate specific portions of your budget for each sinking fund to ensure clarity and accountability. Don't forget to regularly review and adjust your sinking fund allocations as needed to accommodate changing circumstances and new financial goals. 10. Update your budget Regularly revising your budget allows you to adapt to changes in income, expenses, and priorities, ultimately helping you stay on track towards your financial goals. The primary step in budget revision is ensuring that your spending aligns with your current life circumstances and values. Take the time to reassess each category in your budget and determine necessary adjustments. It's essential to maintain a realistic budget to enhance your chances of success and long-term adherence. To update your budget effectively, start by reviewing your income and expenses to determine any fluctuations or new expenditures. Next, reassess your financial goals and priorities, adjusting your budget allocations accordingly. Be sure to keep your budget realistic and flexible, allowing for changes as needed. Regularly monitoring and updating your budget will help you maintain financial stability and progress towards achieving your long-term financial aspirations. The bottom line Spring cleaning your finances is more than just receipt organization or budget trimming. It's about embarking on the remainder of the year with a renewed confidence in your financial management.

Joe Alwyn and Taylor Swift’s love wasn’t forever--but the royalties and credits from the songs they wrote together are Joe Alwyn and Taylor Swift's romance may have ended, but Alwyn continues to reap financial benefits from their time together. The couple, who ended their six-year relationship in early 2023, maintained remarkable privacy regarding their romance. In fact, fans were taken aback when Alwyn disclosed his involvement in co-writing several tracks on Swift's 2020 albums, "Folklore" and "Evermore," under the pseudonym William Bowery. Now, it appears that his contributions under the Bowery alias will continue to reap financial rewards. During their relationship, Alwyn, 33, co-wrote six songs under the pseudonym William Bowery, including tracks like "Exile," "Betty," "Champagne Problems," "Evermore," "Coney Island," and "Sweet Nothing." These songs were featured on Swift's albums "Folklore," "Evermore," and "Midnights." Despite their split in 2023, Alwyn still earns a considerable income from his songwriting credits. Reports suggest that he makes a five-figure sum annually from his contributions to Swift's discography. Analysis indicates that Alwyn has already earned approximately $2.3 million from Spotify streams alone. Moreover, Alwyn continues to receive royalties from additional streaming platforms and Swift's live performances where his songs are included. With Swift's Eras Tour grossing $1 billion, Alwyn's financial gains are expected to be significant. Swift also confirmed Alwyn's involvement as a songwriter under the pseudonym William Bowery. She praised his contribution to "Exile," noting that he wrote the entire piano part. Swift also expressed gratitude for their collaborative songwriting experience during the quarantine period. In 2021, Alwyn's work with Swift earned him recognition at the Grammy Awards when "Folklore" won Album of the Year. Swift acknowledged Alwyn's support during her acceptance speech, emphasizing their creative collaboration during the pandemic. Swift previously revealed that she wouldn't have collaborated with Alwyn if it weren't for the unique circumstances of being quarantined together amid the coronavirus pandemic. According to Life & Style Magazine, Alwyn's songwriting credits have proven highly profitable. "Fair or not, it’s made him a very rich guy. Joe is making so much on royalties and returns from [the] Eras Tour that he doesn’t ever need to worry about money again," remarked one source.

5 low-risk ways to earn 5% or more on your money this spring Driven by soaring inflation, the Federal Reserve swiftly initiated a series of interest rate hikes in 2022, maintaining them at elevated levels to date. The goal was to temper economic growth and stem inflation to a more manageable degree by increasing the cost of borrowing. However, the surge in borrowing expenses has also led to higher interest rates for savers and investors alike. While projections suggest the possibility of rate cuts by the Fed in 2024, the present landscape offers numerous opportunities for attractive returns. For those seeking a yearly percentage yield (APY) of 5% or higher this spring, here are five investment avenues to explore. Certificates of Deposit With Certificates of Deposit (CDs), you secure the certainty of earning a fixed interest rate while safeguarding your principal, within the limits of applicable FDIC or NCUA insurance, provided you refrain from premature withdrawals. Presently, numerous CDs offer yields of 5% or more, although typically, short-term CDs yield higher returns than their long-term counterparts, reflecting the anticipation of impending interest rate decreases. Rob Williams, managing director of financial planning at Charles Schwab, suggests considering CDs as a relatively low-risk option for funds not immediately required for day-to-day expenses. Incorporating CDs with appropriate maturity periods into your portfolio's cash investment allocation or investment cash management plan could prove advantageous at this time. High-Yield Savings Accounts Another option for potentially earning 5% or more on your money, while safeguarding your principal within applicable insurance limits, is a high-yield savings account. Compared to CDs, high-yield savings accounts offer greater flexibility in terms of moving funds in and out. Unlike CDs, which may penalize early withdrawals with a loss of interest, high-yield savings accounts allow for more freedom in accessing your funds. However, it's important to note that high-yield savings accounts come with reinvestment risk due to fluctuating interest rates. While a rise in interest rates can lead to higher monthly interest payments for high-yield savings accounts, CD rates remain fixed throughout the term. Money Market Accounts Money market accounts share similarities with high-yield savings accounts, although the rates, deposit prerequisites, and access to funds may vary among financial institutions. Therefore, it's essential to review the terms offered by your chosen banking establishment. If you prioritize daily access to liquidity, both high-yield savings accounts and money market accounts can be advantageous. Money market accounts, like high-yield savings accounts, can also benefit from federal insurance. However, they are susceptible to the same risk posed by fluctuating interest rates. Money Market Funds Distinct from money market accounts, which are deposit-based, a money market fund functions as an investment account offering a relatively low-risk avenue to potentially earn 5% or more. Money market funds typically maintain a stable value and invest in secure fixed-income assets, such as government bonds, though the specific portfolio composition varies among funds. Numerous money market funds are available that rival CD rates but without the time commitment associated with CDs. These funds are accessible to retail investors via trading platforms or financial advisors. Moreover, they offer liquidity, allowing for swift liquidation on any trading day, should the need arise. Treasury Securities Lastly, Treasury securities, including Treasury Bills and Treasury Bonds, offer slightly higher returns than CDs and are widely regarded as secure investments due to their backing by the federal government. For instance, the 10-year US Treasury is considered the risk-free rate of return. However, while holding Treasuries to maturity can yield 5% or more, they lack the stable value along the way that some other options provide. Investors who directly purchase Treasury securities should closely monitor the risk of increasing interest rates, as selling a Treasury Bill before maturity could result in losses. The Bottom Line In summary, there are numerous avenues to achieve a 5% APY or higher on your investments this spring. Even if interest rates experience a slight decline, strategies like investing in CDs or holding Treasuries until maturity can help secure your returns. However, for those comfortable with assuming a bit more risk, potential for greater returns may lie elsewhere, such as in equities. The recent strong performance of the stock market, coupled with the prospect of Federal Reserve interest rate cuts, suggests that this momentum in the equity market may persist. Nevertheless, for those hesitant to jeopardize their principal, these alternative options still offer the potential to outpace inflation and foster growth in their funds.

Learn how budget and save for the summer festival season without draining your wallet You can't think about summer without thinking about music festival season. The vibrant atmosphere, electrifying performances, and the chance to connect with like-minded music fans create an unforgettable experience. However, attending a music festival can be a pricey venture. To ensure you don't miss out on the fun due to finances, it's essential to plan and budget wisely. Below are effective strategies to budget and save for a music festival, along with expected costs you might incur during your unforgettable adventure. What Is the Average Cost of a Music Festival? Expenses can shoot up quickly, if you're attending a music festival. In fact, spending $2,000 in a weekend is not unusual. Below are costs to expect: Tickets: This is the primary expense, and prices can vary widely depending on the festival and the type of ticket you choose (single-day, weekend pass, VIP, etc.). Costs will vary depending on when you buy and whether you decide to shell out for the VIP options, but tickets for a multi-day event typically cost hundreds of dollars. For instance, in 2023, general admission to Bonnaroo in Tennessee was $380 and up for four days; while passes for Coachella, in California, began at $540 for three days. Accommodation: Whether you're camping, staying in a hotel, or renting a vacation home, accommodation costs are a significant factor. On-site camping may be a way to enjoy festival season on a budget. General admission camping is included in the ticket price for some festivals, and you can typically pay a fee if you’re bringing a vehicle along. Camping not only skips pricey hotel rates, but you also won't have to pay for daily transportation to and from venues. Transportation: Consider travel expenses, including gas, flights, or public transportation to and from the festival location. Even if you live nearby, you may need to pay for a rideshare, a shuttle pass, or gas and parking to get to the event. Food and Beverages: Festivals often have a variety of food vendors, but these can be pricey. Budget for meals, snacks, and drinks throughout the event. Consider bringing non-perishable foods, snacks, and water, if you’re looking for ways to save money at festivals. Merchandise and Souvenirs: It's always tempting to bring home a piece of the experience. If you're looking for ways to save, consider cutting out merchandise out of your spending plan; and focus on low-cost mementos, like photos with friends or festival wristbands. But if you have the budget and want something more, plan for some discretionary spending on festival merchandise. Miscellaneous Expenses: Don't forget to account for unexpected costs or emergency expenses. What Are Some of the Best Ways to Save for a Music Festival? Set a Realistic Budget: Before you start saving, it's crucial to determine how much you can afford to spend on your music festival experience. Consider factors such as travel, accommodation, tickets, food, and miscellaneous expenses. Be realistic about your financial situation and set a budget that won't leave you struggling after the festival is over. Research Festival Costs: Different music festivals come with varying price tags. Research the festival you're interested in attending to get an idea of ticket prices, camping fees, and any additional costs. Factor in whether you'll be camping, staying in a hotel, or opting for alternative accommodations. Understanding the full scope of expenses will help you create a more accurate budget. Create a Savings Plan: Once you've established a budget, create a savings plan to reach your financial goal. Determine how much money you need to save each week or month leading up to the festival. Consider opening a separate savings account dedicated solely to your festival fund to prevent any accidental spending. Explore Group Options: Attending a music festival with friends can be not only more enjoyable but also more cost-effective. Explore group ticket options, shared accommodations, and group travel discounts. Splitting costs with friends can significantly reduce the financial burden while enhancing the overall experience. Volunteer or Hunt for Discounts: Keep an eye out for early bird ticket sales, promotional discounts, and package deals that include tickets and accommodation. Many festivals also offer loyalty programs or referral discounts for bringing friends along, or provide large discounts if you volunteer at the festival. Look for such opportunities can help you secure the best deals and stretch your budget further. Avoid Layaway or "Buy Now, Pay Later" Options: Avoid paying for music festivals with layaway arrangements or "Buy Now, Pay Later" options. Some of these arrangements include interest or charge fees for spreading the cost of your purchase. Instead, create a budget and save up for festival tickets in advance. The Bottom Line Attending a music festival is a thrilling adventure that requires careful financial planning. By setting a realistic budget, researching festival costs, creating a savings plan, and exploring cost-saving options, you can make your dream music festival experience a reality. Remember to be mindful of expected costs and make informed choices to ensure you have an unforgettable time without breaking the bank.

During periods of high inflation, making money in I-bonds was easy. Now bondholders are sobering up during tax season. Series I Savings Bonds have been a popular investment during periods of high inflation, for people seeking a safe and reliable way to grow their savings. However, when it comes to tax season, many bondholders find themselves in the dark about the intricacies of reporting and paying taxes on their Series I bonds. Understanding Series I Bonds Issued by the U.S. Department of the Treasury, Series I bonds (also known as I-bonds) provide a low-risk investment option with inflation protection. Series I bonds accrue interest based on a fixed rate and an inflation rate, ensuring that your investment keeps pace with rising prices. Leveraging tax-deferred growth One of the key advantages of Series I bonds is that the interest earned is tax-deferred at the federal level. This means that you don't have to report or pay taxes on the interest until you redeem the bonds. While this feature provides a tax advantage during the holding period, it's essential to understand the implications when it comes time to cash in your bonds. Options for paying taxes on Series I bonds Report Annually: Interest on I bonds is exempt from state and local taxes but taxed at the federal level at ordinary income-tax rates. You can pay taxes every year on the interest instead of waiting until you cash out, but that can be a headache, especially since TreasuryDirect does not send 1099s. This method allows for a consistent reporting schedule. You only pay taxes on the interest you've received, which can be advantageous if you redeem the bonds over multiple years; however you may potentially have a higher tax liability in a single year if you redeem a significant amount of bonds. Hold Until Maturity (30 Years): You can hold your Series I bonds until they reach their 30-year maturity date, at which point they stop earning interest. You then report the interest income on your Form 1040 for the year the bonds mature. The advantage to this method is that you defer tax payments until maturity, potentially allowing for lower tax rates in the future. However, you may also end up a surprise tax liability by deferring for 30-years, if you don't keep an eye on how much interest you owe. Use Bonds for Qualifying Educational Expenses: You can redeem Series I bonds and use the proceeds to pay for qualified educational expenses, such as tuition and fees. The greatest advantage to this is that the interest is tax-free when used for qualified education expenses. For many people, this provides a practical way to offset education costs. The bottom line Understanding your options when it comes to paying taxes on Series I bonds is crucial for optimizing your finances. Whether you choose to report your bonds annually, hold until maturity, or utilize them for education expenses, being informed enables you to make decisions aligned with your financial goals. Remember to consult with a tax professional to ensure compliance with the latest tax regulations and to make the most of your Series I bonds while minimizing tax implications.

How to implement best practices when renting to friends and family Renting your home or apartment can be a great way to make extra income or cover expenses while investing in another property. Whether you’re a long-time landlord or new to property management, finding the right tenants is key to the rental process. Renting to friends or family may be a dependable way of finding trustworthy tenants--but you need to be confident this won’t complicate your relationship. Here’s what to know before handing over a lease to friends and family--no matter how close they are. What to consider when renting to friends and family The decision to rent to friends and family is not one to be taken lightly. Remember, you’re still a landlord, at the end of the day. Although your new tenant may be a loved one, it's key to consider the following: Is your friend or family member disorganized and forgetful? Is your friend or family member reliable? Can you trust them to maintain your property and not cause damage during their stay? Is your friend or family member in healthy financial standing? Additionally, it's easy to skip some of the legal tasks because you're renting to a loved one, but remember to always do the following: Maintain professionalism when discussing the rental agreement Conduct a credit and background check Agree upon key terms of a lease agreement, deadlines for rent payments, and other key rules for living on property Treat overdue payments or breaches of contract like you would any tenant Ensure that your tenants apply for renters' insurance and receive the appropriate coverage, in case of damages The pros in renting to family members and friends There are many pros to renting to a friend or family. In many cases, living with a loved one can provide a built-in support system; and having someone familiar to share your living space with can contribute to a more comfortable and enjoyable atmosphere. Below are additional reasons to consider renting to family members or friends: Helping a friend or family member in need: If your loved one is in a bind, looking for a place to live and you have an available property, why not help them out? You can potentially help support a friend or family member, by providing them a safe and secure place to live Established trust and compatibility: Since you know your tenant's background, you can lower your risks by renting the space out to them, rather than someone you're unfamiliar with Lessen the time and money to find a tenant: You don’t have to advertise the space and put extra effort into finding a tenant, including interviewing potential candidates and touring the space. Sharing the cost of a home: Renting with a friend can make the financial burden more manageable, especially if you're also living in the home. Splitting rent, utilities, and other household expenses can lead to significant cost savings for both parties. The cons in renting to family members and friends Renting to loved ones might seem like a win-win situation, but there are several drawback to consider. Unfortunately, sometimes friends or family members make terrible tenants; and allowing them to move in can end up costing you more than necessary in the long run. Below are important drawbacks to consider: Taking advantage of your generosity: Your friend or family member may use your relationship as a way to take advantage of your agreement. For example, they may start looking for a discount or extension after a few months. Late rent payments or property damage can have financial implications and strain your relationship. Blurring professionalism and boundaries: Renting to family or friends may blur professional boundaries, making it challenging to address issues objectively. Maintaining a professional approach to responsibilities and conflicts becomes crucial in such situations. For example, a relative might think that calling you at 3 a.m. about a leak is appropriate, whereas a stranger would likely never do such a thing. Risking a close and important relationship: If anything goes wrong, it could affect your relationship. Mixing business with friendship can sometimes strain the relationship. Conflicts about bills, chores, or other living arrangements may affect your relationship if not handled carefully. The bottom line If you set the right boundaries and know someone you can trust, renting to friends or family can be a great experience. It's crucial to approach the decision with open communication, clearly defined expectations, and a realistic understanding of the potential risks. While renting to family and friends can be a win-win situation, both parties must be willing to navigate challenges professionally to maintain a healthy friendship and living arrangement. Remember, careful consideration and communication are key when deciding whether to rent to a friend.

How a financial education can save you money in the long-run Having a solid understanding of personal finance is crucial for saving for retirement. Unfortunately, many people overlook financial education, often leading many to poor money management decisions and missed opportunities for savings. In fact, there is a lifetime benefit of roughly $100,000 per high school student from completing a one-semester course in personal finance, according to a recent report by consulting firm Tyton Partners and Next Gen Personal Finance, a nonprofit focused on providing financial education to middle and high school students. According to Tim Ranzetta, co-founder and CEO of Next Gen, much of that financial value is comes from avoiding high-interest credit card debt and having better credit scores to get preferential borrowing rates for key expenses, such as loans and home mortgages. “You can’t play the money game if you don’t know the rules” Christopher Jackson, who teaches a personal finance course to seniors at Da Vinci Communications high school, a socioeconomically and racially diverse public charter school in El Segundo, Calif., said he found that students were enthusiastic about saving in Roth individual retirement accounts once they understood the concept of compound interest and how investments grow over time. He advises them to open Roth I.R.A.s at 18, rather than waiting until they graduate from college and start a career. One of his students has already saved $14,000, he said. “You can’t play the money game if you don’t know the rules,” Mr. Jackson said. “I teach them the rules of the game.” Students with a financial literacy course under their belt have better average credit scores and lower debt delinquency rates as young adults, according to data from the Financial Industry Regulatory Authority’s Investor Education Foundation, which seeks to promote financial education. A report by the Brookings Institution also found that teenage financial literacy is positively correlated with asset accumulation and net worth by age 25. How financially literate are Americans in general? American adults have shown a “generally poor” level of financial literacy, according to the 2023 Personal Financial Index report from the TIAA Institute and the Global Financial Literacy Excellence Center. On average, adults correctly answered about half of the index’s 28 questions in 2023, consistent with the results since 2017. Americans struggle particularly with understanding risk, the report said. Improving financial literacy is important, the report said, because people with a very low level of financial savvy are more than four times as likely as those with a very high level to have difficulty making ends meet in a typical month. The bottom line Investing time and effort into financial education is an investment in your financial well-being. By learning budgeting, understanding credit, making informed investment decisions, managing debt effectively, and building a robust emergency fund, you can save substantial amounts of money over time. Take the initiative to educate yourself financially, and watch as your knowledge transforms your net worth.

Savory Savings: Expert Tips to Cut Costs on Dining and Takeout It's no secret that dining out and ordering takeout can quickly drain your wallet. According to the Bureau of Labor Statistics, the average American household spends about $3,600 a year dining out. Even as inflation eases, U.S. Department of Labor data shows prices at restaurants and other eateries were up 5.1% last month compared with January 2023. Restaurant and food company executives also say they are still struggling with rising labor and ingredient costs, which are only getting more expensive. “If you look historically after periods of inflation, there’s really no period you could point to where [food] prices go back down,” said Steve Cahillane, chief executive of snack giant Kellanova, in an interview. What’s a reasonable food budget? Determining a reasonable food budget depends on various factors, including your income, lifestyle, family size, dietary preferences, and where you live. However, a commonly recommended guideline is the 10-15% rule. This suggests that you should allocate 10-15% of your monthly income towards groceries and dining out combined. Below is a common breakdown for most households: Groceries (5-10%): Aim to spend 5-10% of your monthly income on groceries. This includes all the food items you purchase for cooking at home. Planning meals, buying in bulk, and taking advantage of sales can help you stay within this range. Dining Out/Takeout (5%): Allocate an additional 5% for dining out or ordering takeout. This provides room for occasional meals at restaurants or the convenience of takeout without overspending. It's important to note that these percentages are general guidelines, and your actual spending may vary based on your individual circumstances. For example, if you have dietary restrictions or preferences that lead to higher grocery costs, you might need to adjust your budget accordingly. Additionally, consider factors such as where you live, your cost of living, and your food prices can significantly impact your budget. Keep track of your spending, review your budget periodically, and make adjustments as needed to ensure that it aligns with your financial goals and priorities. What are ways to save on dining out and take-out? With a strategic approach and a dash of creativity, you can savor delicious meals without breaking the bank. Below are expert tips to help you save money on dining out and takeout without compromising on taste: Explore Daily Specials and Happy Hours: Many restaurants offer daily specials and happy hour discounts, providing an excellent opportunity to enjoy your favorite dishes at a fraction of the regular cost. Check out the timings and offerings of these promotions to plan your meals strategically. Loyalty Programs and Apps: Take advantage of loyalty programs and mobile apps offered by your favorite restaurants. Many establishments reward frequent customers with discounts, free items, or exclusive deals. Downloading restaurant apps can also unlock app-only discounts and promotions. Subscribe to Newsletters: Subscribe to newsletters from your preferred restaurants and delivery services. They often send out exclusive deals, promo codes, and special offers to their subscribers. By staying in the loop, you can seize opportunities to save on your next meal. BYOB (Bring Your Own Beverage): Opting for restaurants that allow you to bring your own alcohol can significantly reduce your bill. Check the establishment's policy beforehand and enjoy your favorite drinks without the hefty markup often associated with restaurant beverages. Utilize Cashback and Reward Credit Cards: Paying with cashback or reward credit cards can earn you significant discounts or cashback on your dining expenses. Look for credit cards that offer bonus rewards for restaurant spending and watch the savings accumulate. Share Entrees and Appetizers: Portion sizes at many restaurants are generous. Instead of ordering individual entrees, consider sharing with a dining companion. This not only saves money but also reduces food waste. Dine During Off-Peak Hours: Timing is everything. Dining during off-peak hours often comes with lower prices and faster service. Book your next date for lunch at a place that may offer special lunch menus or early bird discounts, providing a budget-friendly dining experience. Cook at Home with Friends: Recreate your favorite restaurant dishes at home by experimenting with recipes. Not only does this allow you to learn new recipes and level-up your cooking, but it's also a cost-effective way to enjoy restaurant-style cuisine without the restaurant price tag. Compare Prices and Reviews: Before placing a takeout order, explore multiple platforms and compare prices. Additionally, read reviews to ensure you're getting value for your money. Sometimes, the same dish may be priced differently on different platforms. Take Advantage of Group Discounts: Coordinate dining plans with friends or family to take advantage of group discounts. Many restaurants offer special deals for larger parties, making it a win-win for everyone. The bottom line With a bit of savvy planning and a willingness to explore different options, you can savor the joy of dining out and takeout without emptying your pockets. By incorporating these expert tips, you'll find that enjoying great food doesn't have to come at a premium price. Bon appétit!

New year, new you: Are you improving your finances in the upcoming year? According to a recent survey from Fidelity Investments, 66% of those consumers surveyed are setting financial resolutions for a better 2024. Among Millennials and Gen-Zers, the number is even higher at 75%. Whether you're aiming to save more, invest wisely, or reduce debt, setting financial resolutions can pave the way for better financial habits. Below are five resolutions and tools that can help you improve your finances in 2024. 1. Upgrade Your Savings Account If you still have your savings stored at a traditional bank, consider moving a large portion of your funds to a high-yield savings account. Our top picks are Goldman Sachs Marcus and the Capital One Performance 360 accounts, but it's easy to explore rates at other providers. Rates have soared in recent years, with some banks offering APYs of 5% or more. Given that most traditional banks only offer 0.46% on average, keeping the bulk of your cash in their accounts is a missed opportunity to leverage higher rates of compounding interest. Already have a high-yield account? Consider a certificate of deposit, or CD, for funds you won’t need in the short-term. With the Federal Reserve poised to lower rates next year, CDs are a great way to lock in today’s high interest rates. “The top-yielding savings accounts, money market accounts, and CDs are earning well more than the current rate of inflation, and this is likely to persist in 2024,” says Bankrate Chief Financial Analyst Greg McBride. “Interest rates will probably come down a bit, but so too will inflation. The yields you lock in today will look even better as inflation ticks lower during the year.” One of the fundamental steps towards financial well-being is creating a budget. This resolution involves taking a close look at your income, expenses, and financial goals. Begin by categorizing your spending, distinguishing between necessities and discretionary expenses. Use online budgeting tools or apps to help you track your money more efficiently. Having a realistic budget not only helps you manage your day-to-day expenses but also allows for strategic planning toward your financial objectives. 2. Tackle High-Interest Debt High-interest debt, such as credit card balances and student loans, can be a significant obstacle to saving and investing for the long-term. Start by identifying the debts with the highest interest rates and focus on paying them off first. Consider consolidating debts or negotiating with creditors for lower interest rates. Make it a priority to reduce and eliminate high-interest debt in the new year. 3. Diversify Your Portfolio Investing is a one of the best ways to grow your wealth. Whether you're a seasoned investor or a novice, make a resolution to review and optimize your investment strategy in the coming year. Diversify your portfolio, consider long-term investment options, and take advantage of tax-advantaged accounts, such as IRAs and 401(k)s. If you're unsure where to start, consult with a financial advisor to create a personalized investment plan aligned with your financial goals. 4. Lower Your Insurance Costs Insurance costs have skyrocketed across the board. Homeowners insurance costs increased by nearly 11% between 2021 and 2022, according to S&P Global. While the cost of auto insurance soared 17.8% from July 2022 to July 2023, according the U.S. government's consumer price index. Getting quotes from new insurers can lower costs, as can reducing your coverage, selecting a higher deductible or leveraging discounts. Insurance providers may offer discounts if you bundle multiple policies, such as auto and home insurance. 5. Improve Your Financial Literacy Financial literacy is key to making informed decisions about your money. Commit to enhancing your financial knowledge in the new year. Read books, attend workshops, and follow reputable financial resources to stay updated on economic trends and investment opportunities. The more you understand about personal finance, the better equipped you'll be to make sound financial decisions that align with your goals.